Read More

Currency translations lifted overall revenue growth in the first four months, though at a constant currency basis revenues were down 6.2 per cent.

Exova said oil and gas continued to be “challenging overall” in the first four months with “limited future visibility”.

However the Western Canada operation is reported to have delivered “positive organic revenue growth in the period”.

Exova said excluding oil and gas and industrials, group organic growth was up 1.2 per cent in the first four months, though overall, organic growth was down 1.6 per cent on last year across all operations.

In Products, Exova said the transportation business performed better than expected, “despite contracting overall as a result of lower levels of engines testing”.

Read More

Fire, Building Products & Certification delivered “solid” organic revenue growth, and the group bolstered its position in the Australian fire testing and engineering market with the acquisition of Sydney-based fire safety engineering consultancy business, Defire.

However the Calibration business contracted, “due principally to lower volumes in Sweden”.

Infrastructure, Health & Environment delivered “solid” organic revenue growth across its European and Singapore Infrastructure & Environment business which was partially offset by lower levels of activity in the Middle East .

Exova said the phasing of projects in the Middle East poses “some risk to short term performance in the sector” but adds the overall pipeline of work in the region “remains encouraging”.

The group said it continues to expect “modest organic revenue growth” on a constant currency basis in 2017 with recent cost actions expected to offset “general pressure on group margins”.

Exova said it also strengthened its US Health Sciences business with the acquisition of SL Pharma Labs Inc, based in Delaware.

Exova chief executive Ian El-Mokadem said: “The Group has generally performed as expected in the first four months of 2017.

“We continue to generate organic growth outside of our Oil, Gas & Industrials sector, albeit to more modest levels than in 2016 as we expected.

“We continue to make good progress with acquisitions, with an encouraging pipeline which should continue to contribute to overall revenue growth.”